FATF lauds India’s efforts to combat Money Laundering and Terrorist Financing

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India has secured a noteworthy accomplishment in the recent Mutual Evaluation Report conducted by the Financial Action Task Force (FATF) for the year 2023-2024. It was adopted in Singapore from 26 June to 28 June 2024. India bagged the ‘regular-follow up’ category. Only four other countries of the G20 achieved this position. Thus marking a significant milestone in India’s efforts towards money laundering.

India’s Successful Combat Against Money Laundering and Terror Financing

Terror financing (TF) and Money laundering(ML) are significant threats faced in an economy. India has successfully mitigated the risks arising from terror financing or money laundering. By implementing appropriate measures to control the primary proceeds such as fraud, organized crime, corruption, etc. India also transitioned from a cash-based to a digital economy which played a crucial role in mitigating and reducing ML and TF.

JAM (Jan Dhan, Aadhaar, Mobile) Trinity proved to be an excellent policy along with some strict regulations on cash transactions leading to financial inclusion. This also supported transactions to be made digitally. As digital transactions are easy to trace, thus improving financial inclusion. Thereby mitigating the risks arising from TF or MF.  This FATF recognition is a result of India’s ten-year-long, stringent efforts. To protect its financial system from money laundering and terrorist financing.

India’s Economic Boost and Global Influence through FATF Recognition

India’s booming economy benefits greatly from its performance on the FATF Mutual Evaluation. Which shows the overall stability and integrity of the financial sector. As a result, India might benefit from the increased confidence of investors and better access to international financial markets. Unified Payments Interface (UPI) is India’s fastest payment system.

A good rating can also help in the global reach of UPI. In recent years it has been accepted by many countries, including UAE, France, Singapore, Malaysia, Thailand, Vietnam, Nepal, Bhutan, etc. It has already been launched in Sri Lanka and Mauritius. India’s ratings can help it in leading anti-money laundering and prevention of cross-border terrorism financing efforts.

India’s Leadership in Global Anti-Money Laundering and Counter-Terror Financing Efforts

India has showcased its commitment to anti-money laundering efforts at the same time complying with international standards. It has an ardent stance towards fighting against financial crimes globally. India has certainly set a benchmark for other South Asian countries. That is to implement global standards to counter terror financing. This multifaceted approach successfully brought these actions into compliance with international standards. This was also shown to be beneficial in producing favorable outcomes.

The Indian government has brought in various legislative efforts to mitigate the risks of black money, ML, and TF, from 2014 onwards. Indian authorities have been using the intel given by its intelligence units to take action to dismantle the Terror Financing network in the region. These efforts have stopped the flow of drugs, black money, and funding for terrorism, even near the coast.

India’s Collaborative Success in FATF Mutual Review

The Department of Revenue (DoR) led India’s participation in the mutual review process with the FATF during a two-year period. A diverse, multidisciplinary team that included representatives from multiple ministries. The National Security Council Secretariat (NSCS), state authorities, the judiciary, financial sector regulators, self-regulatory organizations, financial institutions, and businesses all played a crucial role in this success.

Their extraordinary efforts and invaluable contributions were the driving force behind it. This cooperative endeavor showcased India’s efficient AML/CFT structure. India has previously joined the FATF Steering Group. India will have a chance to greatly improve the group’s overall functioning based on its current performance.

Understanding the Financial Action Task Force (FATF)

The Financial Action Task Force (FATF) is an intergovernmental organization founded in 1989 by the G7 nations to combat money laundering and terrorist financing. Along with other related threats affecting the integrity of the international financial system. FATF develops policies and sets international standards to prevent these illegal activities and the harm they cause to society. The organization’s recommendations are designed to provide a comprehensive and consistent framework. Which countries can adapt to their specific circumstances to ensure a robust defense against financial crime?

The organization also conducts mutual evaluations and publishes reports on countries’ adherence to its recommendations. Thus helping to identify areas where improvements are needed. Through its efforts, FATF promotes transparency and accountability in financial transactions. Thus making it more difficult for criminals to exploit financial systems for illicit purposes.

Certified Anti Money Laundering Expert (CAME) program by India Forensic

The CAME program is expanding to reflect the changing landscape of financial crimes. One of the Best AML Certification Bundles available to AML compliance experts is this one, started in 2008 by the India Forensic- Centre of Studies. 

Furthermore, it aims to boost participants’ confidence by enhancing their knowledge and proficiency in KYC and AML. The participants follow a logical path through the program. From grasping the nuances of shell corporations to gaining conceptual clarity on numerous areas of KYC and AML.

Due to many billion-dollar fines, the growing significance of data analytics, and the fintech and regtech sector’s diversification within the financial services industry, there is an exponential increase in the demand for compliance officers in the finance sector. The budget for compliance is rising, and more AML specialists are needed to manage successful AML compliance initiatives. AML and compliance have produced career paths and jobs that are secure and rewarding, but they are not for everyone. This work is hard. Specialized AML training is needed. For applicants seeking compliance, we have designed a unique program taking into account the demands of the workforce and the sector.

Comprehensive Anti-Money Laundering Training by Indiaforensic

The greatest materials that Indiaforensic has developed over the years are all included in this anti-money laundering training course. The three programs’ best features are combined in this one. This application is ideal for dynamic compliance jobs since it seamlessly integrates the various instruction styles.

CAMEs find innovative methods to increase revenue. They support front-desk bankers, traders, and salespeople in achieving success while abiding by the law and their moral principles. The CAME program’s success may be attributed to integrity, making it one of the top AML certifications in the world.

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